Hedge Fund Performance Lacking

Hedge funds have had an average gain of 2.8% through the end of May 2011, according to Channel Capital’s HedgeFund.Net (HFN) research group. The source states hedge fund assets stood at $2.6 trillion in April, up 2.3% over the previous month. The average hedge fund lagged the S&P 500 so far this year.

Barron Maestro: The source article stated the S&P 500 was up nearly 3% through May, but Vanguard shows it up nearly 8%. Hedge funds are once again distinguished by their sub-par returns. Maybe they make up for it in risk-adjusted performance, but I doubt it. Once again this is an example of the managers owning the yachts while investors suffer in rafts.

Disclaimer: It is very difficult to outperform a buy and hold strategy. Many investors have found themselves best served over long time horizons by investing regularly in a diversified portfolio of stocks or low cost, broadly diversified indexed stock funds. Information presented is based on analysis of past data and assessments by the Tactical Timing System model. Future performance may not reflect past performance. Profitable trades are not guaranteed. No system or methodology ensures stock market profits. Although accuracy is strived for, no guarantee is made regarding the accuracy of data presented. Nothing presented here should be considered investment advice, but merely the humble opinion of the author.